Give a detailed explanation for your answer.

True/false/uncertain 1. Unless indifference curves have kinks, the substitution effect is always negative. 2. Assume the bundle (x1',x2',....Xn ) was optimal when income was equal to m. Choosing the same bundle (x1',x2',...,X,") when income is 2m would constitute a violation of the WARP. 3. The larger the quantity demanded of a good, the greater the income effect produced by a change in the price of that good. 4. If all quantities increase at the same percentage rate (e.g. 10%), then the Paasche price index will always be greater than the Laspeyres price index. 5. With perfect complements, there is no substitution effect. Similarly, with perfect substitutes, there is no income effect. 6. In a scenario with deflation (i.e. when prices decrease), cost-of-living adjustment that keep purchasing power constant would leave consumers worse off relative to the original situation